AMC Fined for Appraisal Order Blast Violation

By on October 16, 2020   /   AMCs, appraisal business, appraisal management company, comp photos, Coronavirus, COVID, data, FHA, Freddie, Mortgage applications, unusual homes   /   Leave a comment
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AMC Fined for Appraisal Order Blast Violation

Excerpt: Consolidated Analytics, an AMC based in Anaheim California, was fined $3,000 for violating the Utah AMC Administrative Rules R162-2e-306 “Offering An Appraisal Assignment and Communicating with Two or More Appraisers About a Potential Assignment.

The specific part of this rule that pertains to broadcasting has been relatively effective in reducing the broadcasting of assignments. Clear Capital recently was fined $5,000 for failing to comply and there are additional complaints working their way through the system.

To read more, click here

My comment: Broadcast orders are bad for many reasons for both the AMC and the appraiser: goes to everyone on their list, no considerations about appraiser qualifications for the assignment including geographic. Hundreds of appraisers competing on fees when business is slow make it hard for appraisers to stay in business. There is always someone with a lower fee, in appraising, and any type of business.

When business is strong, such as today, AMCs have to take whatever warm body they can get. Many appraisers are way too booked up and not taking any more work.

Maybe you can get your state appraisal regulator to get a similar regulation!!

Working with difficult appraisal clients(Opens in a new browser tab)

Which Appraisal Clients are used the most?(Opens in a new browser tab)

Marketing and Management Tips for Appraisers

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Building A Secure Appraisal Business

By on February 28, 2020   /   adjustments, appraisal business, data, weird properties   /   Leave a comment
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Building a Secure Appraisal Business

by Joshua Walitt

Excerpt: Like many of you, I got my start as a real estate appraiser in residential mortgage work. At the time, residential mortgage work was all that I knew, and for a time, all that I thought I could do!

As a residential real estate appraiser focusing heavily on 1004 work, I had blinders on and I had not adequately considered the many, many opportunities available to me. As I developed as a professional, I began to realize that the potential career paths, types of work, and the different roles available to a real estate appraiser vary widely. I think too often as appraisers we severely limit ourselves into what we can or can’t do and define the services we can offer to the marketplace far too narrowly.

The industry is changing, and I like to think of myself as being part of the change, rather than being apart from the change. As appraisers, we each need to ask ourselves: “Do I want to be a part of the change that is taking place in the industry, or will I be apart from it?” Either way, as things change in life and in business (and they will!), we are all faced with a choice about how we will adapt to the changes and overcome the obstacles we encounter along the way. As the appraisal industry continues to evolve and change, it’s important that we appraisers understand that we are capable of providing a very wide range of services in a variety of roles.

For example, here is a list of valuation-related services that appraisers are suited for and can diversify into…

To read more, click here

My comment: worth reading with lots of ideas. I have been writing about this since 1992.

Which Appraisal Clients are used the most?(Opens in a new browser tab)

Appraisal Humor

Appraisal business tips

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Urban, Suburban, Rural in Appraisals

By on February 14, 2020   /   adjustments, appraisal, appraisal business, appraisal how to, appraisal regulations, data, E&O, Mortgage applications, mortgage loan volume, unusual homes, weird properties   /   Leave a comment
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Urban, Suburban, Rural?

By Tim Andersen, MAI

Excerpt: QUESTION: Can you help me to understand the differences between urban, suburban, and rural? Where I live and work, everything is essentially one big megalopolis for 30 miles in every direction. Therefore, in my reports, I tend to refer to everything as suburban. A reviewer called me on this, but I can’t figure out why. Please set me straight.

ANSWER: At one time, a location was urban if there were high-rise office buildings and no houses close by, suburban if there were merely low-rise office buildings and many houses nearby, and rural if there were no office buildings and lots of farms, ranches, and vacant land close by. However, that was back in the day, so we need new definitions….

To read more, click here

My comment: This is a tricky issue. This post has some good tips. Tim is a regular contributor to the paid Appraisal Today with much longer articles, focusing on USPAP, lender appraising, state board complaints, etc. He reviews lots of lender form appraisals and wants to help appraisers write better reports. More info at https://theappraisersadvocate.com/

10-20 UPDATE: For lots of Covid analysis and news, go to my new covidscienceblog.com

Appraisal Humor

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What’s the appraisal definition for suburban?(Opens in a new browser tab)

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What’s included in appraisal GLA?

By on November 1, 2019   /   data, Fannie, FUN, humor, square footage, weird properties   /   Leave a comment

Should The Agent Include These Areas In Square Footage?

Excerpt: The most thrown around metric in real estate has to do with square footage and price per square foot. People ask me all of the time what homes in this or that neighborhood are selling for per square foot.

Why do they do this? Because they want to take the price per square foot and then multiply it by the square footage of their home to find out what it is worth. Sounds reasonable right? Wrong….

(An example I see a lot): A heated and cooled finished room that is attached to the main house but you get to by going outside of the main house should not be included in the main GLA.

To read more, click here

My comment: written for real estate agents, but many appraisers, including myself, regularly get asked: “what is in the living area” by agents. I do. This article focuses on ANSI and may help you explain it to them. There are links to his other blog posts on this, and related, topics.

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

What is Included in Appraisal Square Footage?

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What is Risk for Appraisers?

By on October 18, 2019   /   Appraisal fees, data, Mortgage applications, real estate market, weird properties   /   Leave a comment
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What’s all this stuff about risk?

By George Dell

We seem to be hearing stuff about risk recently. Why?

Back in the old days, before internet but after the wheel – It was my challenge as a new appraiser to scratch together four or five comps, then put three of them on a form, or perhaps even all five on a table. We called the table a ‘grid,’ presumably because it looked like the grid on a bird cage.

I soon discovered I was free to fly around inside the grid cage all I wanted. I adjusted to what I had. I learned to live inside the cage.

Then flying electrons came. They flew right through the grid. There were many. Sometimes even a dozen or more. All claiming to be comp messages. It was too much. I had the five. Should be enough. Yep. That’s what my trainer said. That’s what my appraiser education said. And sure enough, it was on my test for my new appraiser license…

Now, we worry about What is Risk for Appraisers?

To read more, click here

My comment: Next month’s paid Appraisal Today will have a long article, “Adjust your adjustment, or adjust your attitude?  The Hype and the Reality” by George Dell. Very interesting!

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Condo vs. Townhouse for appraisers

By on March 15, 2019   /   AMCs, appraisal how to, AVMS, commercial appraisal, data, listings, Mortgage applications, mortgage loan volume, real estate market, Strange homes, unusual homes, weird homes, zillow   /   1 Comment
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Is It a Condo, a Townhouse, a Site Condo or None of the Above?

Excerpt: When appraising townhouses, I always search the MLS for both single-family attached sales as well as condominium sales. Why? It’s because at times, there is confusion between the differences. Often I see real estate agents list townhouses as condos when they are not actually condos and visa versa.

I totally understand why. When it comes to townhouses, it is impossible to know from an outward appearance whether or not it is a condo, or not. Before we get into that, what is a condominium and what is a townhouse?

Well written article. Worth reading.

My comments: The first question in appraising is always “what are you appraising?”. Some appraisers just look at what structure is there. You are appraising the form of ownership, the land and what is attached to the land. With condominium form of ownership, you own the airspace. It does affect what you can do with a home. Some people don’t like HOAs and dues. I sold my house on the water in 2008. There was a large rear yard that was on a “tidelands lease” with an annual payment to the city. It was recently re-listed and only included the original 4,000 sq.ft. lot, not the leased land. Both showed up on plat maps. I wonder what the appraiser for the sale will say about it?

About 20 years ago I appraised a detached home in a project built in the 1980s with both attached (stacked condo style,  duets – sets of 2 semi-detached homes, and townhome (attached) style) plus detached homes. The owner, the HOA president was surprised to learn that they were all condos. I had a title report I showed to him. (The detached homes are now called site condos.) Another nearby small development of sets of two homes (duet or semi-detached) built in the 1960s did not have any common ownership or dues. I have seen these in other nearby cities also.

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Do tandem bedrooms count as bedrooms in appraisals?

By on October 11, 2018   /   adjustments, appraisal how to, data, mortgage loan volume, state appraiser regulators, unusual home, zillow   /   Leave a comment
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Do Tandem Bedrooms and Garages Impact Value?

 Excerpt: There is less privacy in the one bedroom because it must be walked through to get to the other bedroom. This is considered to be functional obsolescence.
This type of situation is most often found in older homes. I have seen this type of situation many times on the second floors of many bungalow or cape cod style dwellings I have appraised. Although, it can exist in any style home.

My comment: I see tandem rooms a lot and sometimes tandem garages. I think I have finally convinced the local agents not to call them bedrooms. Of course, some insist on using Assessor data, which has not been updated since 1979, when Prop 13 passed and re-assessments stopped unless there was a sale or new construction.

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Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

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Sometimes “being nice” is best for appraisers

By on October 4, 2018   /   adjustments, appraisal how to, data, mortgage loan volume, real estate market, unusual home   /   Leave a comment
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A Spoon Full of Sugar (when dealing with annoying borrowers, AMCs, neighbors, etc.)

Excerpt: Remember when you were a kid? No, not a goat. You know, a young human. Remember your parents giving you that thick, pink, nasty tasting medicine, called an antibiotic? While we hated the taste, we needed the medicine. And, after a few days, we began to feel better.

When it comes to appraisals, the information they provide can help to protect us from making a bad financial decision. However, there are times when the results of an appraisal may leave a bad taste in the mouths of those reading the report.

Appraisal Business Tips 

Humor for Appraisers

Covid-19 Residential Appraisers Tips on Staying Safe

For Covid Updates, go to my Covid Science blog at covidscienceblog.com

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5-24-18 Newz//UAD and Fannie Form Changes. Floating Island. Refis dropping

By on May 24, 2018   /   adjustments, AMCs, appraisal business, appraisal how to, appraisal management company, data, Fannie, Freddie, lender appraisals, marijuana license, real estate market, state appraiser regulators, Strange homes, weird homes, weird properties   /   Leave a comment
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It’ll never sell that high (but then it did)

Excerpt: There’s no way it’s going to sell that high. Have you ever thought that in real estate? Well, let’s talk about a property that many said would never sell at $4.1M, but then it did. I definitely have some takeaways about this lofty condo in Downtown Sacramento (CA), and I hope non-locals will relate to the commentary. (My note: median home sale price is $367,500)

Details and lots of graphs at:

My comment: The median home sale price is $367,500. This is definitely an outlier for the area.

A floating Pacific island is in the works with its own government, cryptocurrency and 300 houses

Just For Fun!!

Excerpts: The Floating Island Project plans to create off-shore housing that uses its own currency and operates outside of government regulations.
– The project is a pilot program in partnership with the government of French Polynesia.
– A long-term vision for the project is hundreds of new countries floating on the ocean.

As well as offering a home for the displaced, the self-contained islands are designed to function as business centers that are beyond the influence of government regulation.

Check out the video and lots more details at:

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5-10-18 Newz//Market Value Fallacies. Broken Mortgage Market. Crazy Appraiser Stories

By on May 10, 2018   /   adjustments, AMCs, appraisal how to, appraisal management company, data, hybrid appraisals, Mortgage applications, mortgage loan volume, real estate market   /   Leave a comment
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Is it all a big lie? Are there really 6 fallacies of market value?

By George Dell, MAI, SRA, ASA

Excerpts: Some ten years ago, we saw the start of the economic meltdown. Were appraisers to blame?  Some tried to pin the blame that way. But was there a big lie underneath? The required (federally insured) definition of value has seven distinct elements. Were appraisers doing what they were told?
Seeking entertainment for my Stats, Graphs, and Data Science¹ classes, it seemed fun to see if these assumptions had not been religiously followed.  This led to a PowerPoint slide entitled:
 “Dell Operative definition of market value”
Check it out at:

My comment: Interesting comments plus some humor ;>

In the Trenches, Crazy Appraiser Stories

Just For Fun!!

Excerpt: You’ve all got them… The crazy car chases, the surprising living conditions, the exotic assignments and the unique collectors. Here are a few of our stories we found buzz worthy.
This was a beautiful 3,200 sq ft home with all the extras. After measuring…
The Stories plus 10 comments with more stories.
My comment: I love the foto of the crazy appraiser!!

Which of us does not have a weird experience… or lots of them ;>

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